Abstract

This paper investigates how misinformation interacts with technological infrastructures and regulatory mechanisms in fragmented financial markets. Using the Vinc i Hoax -Crash of November 2016, a unique incident where a fraudulent press release triggered three circuit breakers on Euronext, we provide the first empirical cross -market analysis of misinformation shocks in Europe. Drawing on high -frequency data, we show that false news provoked immediate herd -like reactions consistent with information cascade theory, erasing billions of euros in minutes. Circuit breaker halts on Euronext redirected trading flows toward alternative venues such as Bats and Chi -X, demonstrating how unsynchronized safeguards can unde rmine market stability. Moreover, spillover effects extended to sector -related stocks, which experienced abnormal price declines and liquidity shifts despite not being halted. These findings highlight misinformation as a market -structuring force that ampli fies systemic vulnerabilities, reshapes trading dynamics, and challenges the design of automated safeguards. We discuss implications for regulators, exchanges, and information providers

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